Basic Concepts

*. The process of analyzing, classifying, summarizing and communicating all transactions involving
the receipt and disposition of government funds and property and interpreting the results thereof is
a. Government accounting.
c. Government accounting.
b. Budgetary accounting.
d. Obligation accounting.
RPCPA 1096
*

It is a systematic recording, classifying, summarizing governmental transactions in terms of money
and other resources consistent with accounting and budgetary law.
a. Local government.
c. Government budgeting.
b. National government.
d. Government accounting.
RPCPA 0598

*.

One of the basic features in government accounting is
a. The accounting of money collected is not separate and independent from the accounting of the
use or disbursement of said money collected.
b. As to the basis of accounting, it is either cash or accrual basis not a combination of both.
c. Budgetary and real accounts are used and estimates are recorded and accounted for.
d. Depreciation of fixed assets is considered an overhead expense.
RPCPA 0588

1

.

*.

*.

Governmental accounting systems of state and local governmental entities (SLGs) should be
organized and operated on which of the following bases?
a. Proprietary fund.
c. Governmental fund.
b. Fiduciary fund.
d. Fund.
Gleim
A feature of government accounting that provides for the ceiling or maximum amount an agency
can spend or incur in the performance of its functions.
a. Budgeting accounting.
c. Obligation accounting.
b. Responsibility accounting.
d. Fund accounting.
RPCPA 1096
A major difference between government and commercial accounting is that a governmental unit
should
a. Always establish and maintain complete self-balancing account for each fund.
b. Use only the cash basis of accounting.
c. Not record depreciation expense in any of its funds.
d. Use only the modified accrual basis of accounting.
RPCPA 1082, 1085

*.

The review and approval of the national budget by the Congress of the Philippines and the
formulation of an appropriate bill
a. Authorization.
c. Execution.
b. Preparation.
d. Accountability.
RPCPA 1096

*.

Congressional authorization in the form of a law to make payments out of the public treasury for
specific purposes after compliance with certain conditions.
a. Appropriation.
c. Budgeting.
b. Allotment.
d. Obligation.
RPCPA 1096

*.

An authorization by the legislative body in the form of laws for payments to be made with funds of
the government for specified purpose is
a. Allotment.
c. Budget.
b. Authorization.
d. Appropriation.
RPCPA 0588

*.

An authorization from a legislative body to make payments out of the National Treasury under
specified conditions and for specific purposes
a. Cash disbursement ceiling.
c. Appropriations.
b. Allotment.
d. Budget.
RPCPA 0579

*.

An authorization from a legislative body to make payments out of the National Treasury under
specified conditions and for specific purposes.
a. Allotment.
c. Budget.
b. Appropriations.
d. Fund.
RPCPA 1076

*.

It provides for the ceiling or the maximum extent an agency can commit the resources of the
government in the performance of its functions
a. Obligation accounting.
c. Fund accounting.
b. Allotment.
d. Commercial accounting.
RPCPA 1093

*.

Formal authorization issued by the Department of Budget and Management to a government
agency to incur obligations up to a specific amount.
a. Cash disbursement ceiling.
c. Supplementary budget.
b. Allotment advice.
d. Appropriation.
RPCPA 0590

The term “fund” as used in government or fund accounting usually denotes a (an) a. b. d. Appropriations. June 30. An amount arising from an act of an administrative official which binds the government to the immediate or eventual payment of a sum of money. c. Only two statements are false.” Which of the following disbursement does not require appropriation before it is paid. a. d. provided they do not contravene existing laws and regulations. RPCPA 0586 d. Fiscal and accounting entity having a set of self-balancing accounts. February 15. bureau or office. The Congress may not increase the appropriations recommended by the President of the Philippines for the operation of the Government as specified in the budget. Cash disbursement ceiling. a. restrictions. b. b.” a. the President of the Philippines shall have the power to levy and impose taxes in order to meet the deficit. Where there occurs a budget deficit. *. c. Budget. the term “fund” usually denotes (?) a. Liability to other governmental units. RPCPA 1093 *. As used in government or in fund accounting. b. revenue or tariff bills. An appropriation made by law. 1984. The following statements related to the Philippine Constitution of 1986:  Congress may increase or decrease the appropriation recommended by the President for the operation on the government as specified in the budget. Budget. This is a sum of money or other government resources set aside for the purpose of carrying out specific activities or attaining certain objectives in accordance with specific regulations. no money shall be paid out of the National Treasury except in pursuant of a a. Cash disbursement ceiling released by the Office of the Budget and Management to agencies of the national government for CY 1983 are made available for payment of 1983 obligations for current operating expenditures pursuant to LOI No. Pursuant to the Philippine Constitution. b. 925 up to a. Budget. b. or limitations. a. Interest payment from sinking fund. last day of closing the books of account and submission of preliminary trial balance. or bills authorizing an increase in the public debt shall originate exclusively in the House of Representatives. Fund. President’s directive or letter of instruction (LOI). Appropriation. c. bureau or office. March 31.*. Salaries of government personnel. . Fund. 1983. Obligation. c. d. The local chief executive is principally responsible for the fiscal administration of the local government. As specifically provided for in the New Constitution. and constitutes an independent fiscal and accounting entity. no money shall be paid out of the Treasury except in pursuance of a. c. RPCPA 1076 *. c. c. December 31. Repair and maintenance of government facilities. An appropriation authorized by the legislature for use of an agency. RPCPA 1078 The new constitution provides that “No money shall be paid out of the treasury except in pursuance to appropriations made by law. Three statements are false. c. d. *. President’s directive. RPCPA 1096 *. b. None of the statements is false.  Discretionary funds appropriated for particular officials need not be supported by vouchers. This is sometimes called “non-budgetary disbursements. RPCPA 0584 Government Funds *. Only one statement is false. d. Cash allotment. Construction of government building. e. RPCPA 0579 *. Sum of money designated for a special purpose. b. The Philippine Constitution provides that a. GAAP as well as sound management and fiscal administration shall be observed in the utilization of government funds. An allotment. Allotment. (?) b. 19983. 1984 RPCPA 1083 *. Appropriation authorized by the legislature for use of an agency. RPCPA 1091 Philippine Constitution *. c. Appropriation.  All appropriations. Program. d. d. d.  No law shall be passed authorizing any transfer of appropriations from one agency or office of the government to another.

Budgets *. RPCPA 1093 *. Revolving Fund. which. Obligational authority. Performance budget. Redemption fund. d. c. General Funds and Special Funds. General budget. Appropriation. RPCPA 1093 *. *. Supplemental budget. A fund. No allotment shall exceed appropriation. A financial plan to augment the general budget a. projects and activities with the use of defined ranking procedures. RPCPA 1076 *. No liquidation shall exceed obligation. a. Budget. b. d. An authorization to incur expenditures based on appropriation provided by the Ministry of Budget. Allotment request. e. Plans & Projects *. Program. Program. Plan. A sum of money designated for a special purpose/ A fiscal and accounting entity having a set of self-balancing accounts. RPCPA 0588 *. d. d. b. c. d. Deficiency budget. a. e. No obligations shall exceed allotment. Trust Fund. a. Special Funds and Revenue Funds. Government funds classified according to purpose for which they may be used are a. A subdivision of a program covering a homogenous group of activities and describing the work to be done. Cash disbursement ceiling. Special fund. As used in government budgeting. Program. Special budget. Any technique or procedure for developing numerical factors of converting work units to quantitative statements of manpower. c. d. Supplemental budget. What are the rules on the use of government funds? a. RPCPA 1093 RPCPA 0598 A plan or program of activities together with costs of undertaking them to meet goals or targets which emphasize on expected results. The functions and activities necessary for the performance of major purpose for which a government entity is established a. d. b. c. e. General Fund. RPCPA 0581 Programs. A fund in which the assets are administered by the Government in a fiduciary capacity. Budget. Budget. Project. A financial plan which serves as a framework of accounts a. b. General budget. Object. An authorization issued to allow the use of allotments to the last centavo (or zero balance) b. d. Appropriation act. Performance budget. d. Obligations. Sinking fund. *. b. RPCPA 0581 *. segregates specified revenues for limited purposes a. A budget where only additional requirements of the end-user need justification. c. d. b. A document which sets out the chief measures that the government intends to take in order to achieve defined goals of development. a. d. Financial plan for the general expenditures of government a. c. c. c. RPCPA 1080 *. Revenue Funds and Trust Funds. d. RPCPA 0598 . Object. b. Resources. RPCPA 0598 b. RPCPA 0598 *. The equity of a municipal corporation. c. c. b. General fund. by legislative action. Special budget. c. All of these. General Funds and Trust Funds. Special Fund. Project. *. c. Plan. it comprises all the functions and activities devoted to the accomplishment of a major purpose for which a government entity is established a. A liability to other governmental units. d. c. Financial statement. Deficiency budget. b. All of these. b.b. c. RPCPA 1093 *. Project. RPCPA 0598 Zero base budget is a. Systematic consideration of all agency programs. d. b. Supplemental budget.

d. its subdivisions. b. Bureau of Treasury. b. Ministry of Finance d. d. Bureau of Treasury. d. including government financial institutions such as the Central Bank. Government Agencies *. *. the agency that keeps the “general accounts” of the government is a. Office of the Budget and Management. c. *. Designing. including governmentowned or controlled corporations and other financial and/or statistical reports as may be required by the Commission. d. RPCPA 1093 *. RPCPA 1093 *. a term frequently used to refer to the objects of means which must be used to accomplish a specified object or project a. Philippine National Bank. e. . c. Department of Budget and Management. In budgeting. The agency responsible with the duty to keep the general accounts of the Government. The Administrative Service. Ministry of Budget. b. Office of the President. and approving the accounting systems of government agencies. National government units. This Office in the Commission on Audit shall be responsible for exercising supervision and control over the implementation of auditing and accounting rules and regulations in departments. b. Bureau of Treasury. Project. d. RPCPA 1078 The agency of government which plays a pivotal role in the cash operations of the national government a. d. b. National and local governments and government corporations. Central Bank of the Philippines. Bureau of Treasury. The National Government Audit Offices. Examining. Land Bank and Philippine Veterans Bank. b. c. Office of the Budget and Management. Bureau of Treasury. Bureau of Internal Revenue. RPCPA 0591 This Office in the Commission on Audit shall be responsible for preparing the annual financial report of the Government. c. RPCPA 1079 *. c. Commission on Audit. b. d. National Accounting Office. preparing. RPCPA 1093 *. Promulgating accounting and auditing rules and regulations. Keeping the general accounts of the government. *. The Accountancy Service. RPCPA 0579 The functions of the Commission on Audit do not include a. promulgate accounting rules and regulations. Commission on Audit. Budget Ministry c. The Systems and Training Service. Central Bank of the Philippines. Ministry of Finance. The Legal Service. d. agencies and instrumentalities. c. Expenses. Which agency of the government is in charge of the accounting receipt of the proceeds of foreign and domestic loans as well as the servicing thereof? a. bureaus and offices of the National Government. Department of Budget and Management. c. c. Department of Finance. and to submit to the President and to Congress an annual financial report of the Government including its subdivisions a. d. c. *. and settling all accounts of the government. b. The agency of the government in charge with the accounting of the receipt of the proceeds of foreign and domestic loans as well as the servicing thereof is a. RPCPA 0587 The chart of accounts for government agencies shall be prescribed by the a. The Corporate Audit Office. In accordance with the provisions of the New Constitution of the Philippines.*. None of the above. b. local and corporate government units. a. The National Government Accounting Division. the Standard Government Chart of Accounts is prescribed for use of a. The Program Audit Office. Commission on Audit b. c. National. auditing. a. Income. Commission on Audit. Commission on Audit. RPCPA 0584 b. Under the New Constitution of the Philippines. Resources. National and local governments. RPCPA 1079 Chart of Accounts *. d.

d. After the end of the accounting period during which the obligation was incurred. The “Loans Payable” account is used to record the amount of bonded and non-bonded indebtedness to foreign and local creditors for which the National Government is directly to subsidiarily liable. pursuant to Rep. Its purpose is to a. It is charged for the amount of obligations paid. c. long-term indebtedness to domestic and foreign creditors. b. After ten years. b. Appropriations control. and is charged for the total expenditures of the agency. Expenditures control. It is a controlling account.e. b. this account is a. RPCPA 1080 *. *. Two years after the incurring of the obligation. d. Comply with requirements of mechanized accounting. c. Act. Facilitate location of accounts in general ledgers. National Clearing Account – Cash Earmark for Cash Disbursement Authority (99-703) c. National and local governments and government corporations except financial institutions whose accounts are prescribed by the Central Bank of the Philippines. Charged at year-end for income earned by the agency. Budget control. Public debt. a. b. Encumbrances control. Kept in the books maintained in the Commission on Audit. RPCPA 1079 d. RPCPA 1083 *. The account credited when supplies previously ordered are received in a government unit is a. the debits of which are shown in a subsidiary ledger called the Request for Obligation of Allotments. Guaranteed obligations. National income account RPCPA 0581 *. Invested Surplus (94-) c. It is a temporary account. c. a corollary entry is made charging Invested Surplus and crediting Loans Payable. one of the powers of the Commission on Audit is to keep the general account of the Government. this account is used to record the amount of non-bonded. such as 7-70-100 for Cash in Treasury. Receipt of the proceeds of the loan is recorded by debiting Cash and crediting Income. National Clearing Account – Cash Disbursement Ceiling (99-200) b. RPCPA 1080 *. symbols or numbers. Which of the following statements pertaining to long-term indebtedness is not correct? a. d. the period of prescription of obligations. 3526. The Loans Payable account includes liabilities arising from contracts for the purchase of equipment to be delivered in the following year. Current Surplus Unappropriated (92-) d. Facilitate location of accounts in subsidiary ledgers. RPCPA 0590 *. In government accounting. d. b. Current Surplus – Unappropriated (92) d. c. d. No. The account “Obligations Incurred” (Account 82) reflects the liability of a government agency for expenses chargeable against the current year’s allotments. b. c. d. *. After the submissions of the final trial balance. c. RPCPA 1080 Under the new Constitution of the Philippines. one of the powers of the Commission of Audit is “to keep the general account of the government. *. The general account referred to is a. Facilitate orderly arrangement and classification of accounts. RPCPA 1079 *. and has to be closed at year-end to Accounts Payable-Unliquidated Obligations (Account 81-400) c. To take up the long-term liability. The year-end balance in this account represents the outstanding obligations and is carried forward to the beginning of the following year. For government agencies operating under the general fund. a. Loans payable.” One of this account is a. RPCPA 1079 . Cash – Treasury Account Current for deposit (70-700) RPCPA 1083 Under the new Constitution of the Philippines. Obligations payable. a. Cash – Treasury Account Current – TW Disbursement (70-702) e. The account “Current Surplus Unappropriated” (Account 92) represents that part of current surplus which has not been earmarked through legislative appropriation. Kept on the books of the agency itself. to distinguish items within a given classification from each other. b. Coding is the systematic assignment of letters. Invested Surplus (94) b. Credited in the corollary entry capitalizing the cost of equipment purchased. Accounts Payable – Unliquidated Obligation (81-400 are reverted to the current surplus unappropriated if the creditor is not paid by the government.

Payment of obligations by Treasury Current Account for Agencies (TCAA) checks are recorded in a special book called a. b. “T” account b. Taxes. c. d. Obligations incurred. e. National government agencies are using the voucher system of accounting. Budget. d. b. The voucher system of accounting is being used by the national government. The balance sheet accounts. Reserve for encumbrance. It should always be used for capital outlay. c. *. c. Accounting Records and Financial Statements *. Obligations incurred. Vouchers payable. c. will be recorded in . b. d. debit. Appropriations. b. c. the control accounts for revenue and expenditures are found in a. Appropriations. c. RPCPA 0584 *. b. b. balance. All receipts of funds are deposited in the Bureau of Treasury. RPCPA 0591 d. *. Journal of Disbursing Officer c. “T” account. hence it should be considered as income. To obligate and pay the payroll of the month from cash advance of a disbursing officer. The index card showing the name of creditor. It forms part of the current surplus unappropriated of the government which should be budgeted and appropriated. Capital outlays. Government funds should be spent solely for public purposes. d. Current operating. c. RPCPA 1096 Proceeds of borrowing either from domestic or foreign sources are considered income of the national government because (?) a. contracts awarded. RPCPA 0590 b. General Fund. Appropriation allotted. Journal and Analysis of Obligations. c. c. RPCPA 1083 *. The request for obligation of allotment. d. b. It should always be used for capital outlay. records the amount of orders placed. d. debit. credit. RPCPA 1096 Expenditures in the government are broadly classified into a. Obligation of allotment. RPCPA 0590 a. Which of the following accounts is a budgetary account in government accounting? a. Reserve for inventory of supplies. Proceeds from loans and borrowings. etc. This account. All receipts of funds are deposited in the Bureau of Treasury. Journal of Warrant Issued. The subsidiary ledger for obligations incurred is (?) a. The voucher itself. Grants and aids received from foreign governments. Estimated uncollectible taxes. b. *. The subsidiary ledger for obligations incurred is (?) a. One of the following is not considered government income: a. *. d. d. Journal of Checks Issued by Deputized Disbursing Officer. d. *. Fund balance. RPCPA 1080 *. b. etc. Index card showing the name of creditor. RPCPA 0598 Which of the following accounts of a government agency is closed out at the end of the fiscal year? RPCPA 1089. Proceeds of borrowing either from domestic or foreign sources are considered income of the national government because (?) a. Fund balance. RPCPA 1083 In government accounting. RPCPA 0587 *. Both the balance sheet and budget and operation accounts.*. credit balance. hence it should be considered income. The voucher itself. The budget and operation controls. National clearing accounts. c. d. Accounting rules and regulation so requires. *. used in government accounting. a. Government buildings. None of the above. services received or other transactions which are legally earmarked or established against an allotment during the current year. It forms part of the current surplus unappropriated of the government which should be budgeted and appropriated. Appropriation authorized.

Trial Balance of Totals. *. b. Advice of allotment. Salaries of casual or permanent employees of the government. *. *. Property taxes. e. Obligation accounting system. Purchase of supplies and materials charge to appropriation. d. Office supplies. The budget. it is not correct to a. RPCPA 0590 *. In government accounting. Journal of disbursement by disbursing officer. c. Statement of changes in financial position. Preliminary trial balance. None of the above. d. Debit advices received from foreign banks. the excess is a. the revenue control account is increased when recording a. so reports are “certified correct. RPCPA 0588 *. c. b. Statement of operations. RPCPA 1096 In government accounting. Final trial balance. The closing of budgetary accounts. RPCPA 0589 b. Allotments received from the Ministry of Finance. c. a corollary entry is necessary to record the purchase of a. RPCPA 1083 *.” RPCPA 1096 . Debited to reserve for encumbrances. The books of Bureau have an account (code 7-70-230) Cash – Foreign Banks. b. This corollary entry is required in a. Correct a debit error by a debit entry but in the negative. the journal of disbursements by disbursing officers. Adopt a combination of the cash basis and accrual basis. b. c. c. d. and the journal of checks issued. Travelling expense. Obligation of allotment. d. RPCPA 0590 *. Credit advices received from foreign banks. d. Purchase of supplies charged to appropriation. Emphasize on correctness. Obligations for rental of facilities. Purchase of a “pajero” jeepney. b. c. In national government accounting. which is used to record the cash transactions with foreign banks. Materials for maintenance of equipment. the journal of warrants issued. *. c. d. Credited to reserve for encumbrances. d. In government accounting. b. Journal of checks issued by Deputized Disbursing Officer. We credit this account for a. The books used in this phase of accounting are the general journal. Combination of Trial Balance of Totals and Trial Balances. the journal and analysis of obligations. Obligations for rental of facilities. d. Traveling expenses of officials outside their official station. c. All of these. Mercedez Benz cars. It shows the excess (deficit) of income over expenditures for the fiscal period then ended. When the budget of a governmental unit is adopted and the estimated revenues exceed the appropriation. Adjusted Trial Balance. Purchase of machinery. Rental of building leased by a national government agency. Journal and analysis of obligation. Automotive spare parts. c. b. and journal of Disbursement by Disbursing officer. Debited to fund balance. Proceeds of cash loans made available by foreign leading institutions. This financial statement is submitted by government accountants to the Commission on Audit. Cash deposits on receipt of allotment advices. Regularly take up depreciation. c. A corollary entry is necessary in government accounting to record (?) a.a. RPCPA 1080 *. b. The appropriations. Purchase of supplies. a. Cash shortage by disbursing officer. c. d.RPCPA 0598 Final trial balance in government accounting consists of a. RPCPA 0584 Journal and analysis of obligations. d. corollary journal entry is not used in (?) a. RPCPA 1088 *. b. b. d. d. b. Used by the national government that provides uniform accounting for accruing and liquidating obligations. e. Credited to fund balance. Trial Balance of Balances. Corollary entry in government accounting is required to supplement another entry covering the same transaction. RPCPA 1085 Accounting Entries *. a. c.

d. The entry to close the used cash disbursement ceiling at the end of the accounting period in the book of the Bureau of Treasury is RPCPA 0584 Debit Credit a. The year – December 31. In the book of Regional Office. b. RPCPA 1083 *. None of these In a decentralized accounting procedures between a Central Office and Regional Office in government agencies. National Clearing Account 99 Appropriations Allotted 90 b. RPCPA 1083 *. The first semester – July 31. the journal entry to record the release of suballotment with cash disbursement ceiling in the books of the Regional Office is RPCPA 0584 a. Income 0-91 xx Appropriation Allotted 0-90 xx d. The first quarter of the ensuing year – March 31. Debited to reserve for encumbrances. *. d. No journal entry. Income 0-91 xx Current Surplus Unappropriated 8-92 xx *. the Journal entry to transfer income to the Central Office in a decentralized accounting is RPCPA 0584 Debit Credit a. c. Debited to fund balance. Income 0-91 xx National Clearing Account 0-99 xx b. d. c. Closed at the end of the accounting period to a surplus account because the balance of this account is not owned by or does not insure the benefit of said agency. c. credited to revenue for encumbrances. Eliminated at the time the Commission on Audit prepares a consolidated final trial balance because this account is a reciprocal account. Current Surplus Unappropriated 92 Current Surplus Appropriated 93 c. in the book of the depository agency. Credited to fund balance. b. Furniture & Equipment in Transit 8-79-900 Obligation Incurred 0-92 RPCPA 1083 *. Cash – other books 8-70-300 xx National Clearing Account 8-99 xx .” the journal entry to record the appropriation is RPCPA 1083 a.Appropriated 8-93-310 b. Receivable sub-allotment with CDC Appropriation Allotted b. National Clearig Account – CDC Appropriation Allotted c. the excess of revenues over estimated revenues is a. In the book of the national agencies using “special accounts under the general fund. 1983. Furniture & Equipment 8-79-200 Current Surplus – Unappropriated 9-92-310 d.*. b. Equipment for General Public Services 8-79-100 Current Surplus . Payable. 1984. Cash-Treasury Account Current (70700) a real account. RPCPA 1082 *. Memorandum entry 8-71-199-2 0-90 0-99-200 0-90 8-81-199-2 0-90 Debit xx Credit xx xx xx xx xx *. Closed to account “National Clearing Account – 99” in the book of the Commission on Audit. 1983. is a. Income 0-91 (xx) Receivable – income remittance 8-71-199-3 xx c. Unobligated balance of appropriation allotment for calendar year 1983 are reverted to the current surplus unappropriated in case of general appropriation at the end of a. sub-allotment with CDC Appropriation Allotted d. d. Every quarter. In case of general funds. The corollary entry at the time an obligation is incurred for the purchase of equipment is a. Not closed to the surplus account because this is a real account and under the GAAP only nominal accounts are closed to surplus account at the end of the accounting period. Furniture & Equipment in Transit 8-79-900 Invested Surplus – Purchases 8-94-110 c. When estimated revenue account of a government unit is closed out at the end of the fiscal year.

000 Tax revenue $140. d.000 $140. The journal entry of the government at the time the taxes are levied is: A.000 of the taxes will never be collected. National Clearing Account Cash CDC National Clearing Account CDA c. 8-99 8-70-703 8-99-703 8-99-800 0-99-200 0-90 xx xx (xx) (xx) xx Tax receivable Tax receivable Tax revenue Allowance for uncollectible taxes $140. c. Costs adjusted for price level changes. b. in case of special account in the general funds. Income 0-91 xx National Clearing Account 8-99 Xx c.000 B. Tax revenue $126. Historical.000 CIA 0594 IV-32 xx At year end. Current appraisal. Income 0-91 xx Current Surplus – Unappropriated 8-92 Xx b. the journal entry to close the income account in the back of the Commission on Audit is RPCPA 0584 Debit Credit a. Replacement cost. National Clearing Account Cash Agency Account Current Check Disbursement c. When reporting for governmental units. Tax revenue $140. D. Historical and current presented in two separate columns. the entry to close the used CDC at the end of the accounting period is RPCPA 1093 a. what type of costs should be presented in the financial statements? a. c. b. Cash – other books National Clearing Account b.000 . what type of costs should be presented in the financial statements a. Historical adjusted for price-level changes.000 C. Memorandum entry *. RPCPA 1088 *. In the books of the Bureau of Treasury.000 Allowance for uncollectible taxes $14.000 Tax receivable $140.000 $14. Historical cost. d. National Clearing Account CDC Appropriations Allotted d. Income 0-91 (xx) Current Surplus Unappropriated 8-92 xx d.000 in taxes and estimates that $14. RPCPA 1082 .b. Current appraisal. Financial Statements *. Tax receivable $140. National Clearing Account CDC Appropriation Allotted *. National Clearing Account Cash CDC National Clearing Account CDA d. When reporting for governmental units. National Clearing Account Cash Agency Account Current Check Disbursement 2 A government has just levied $140.000 $126.

Only the portion of the taxes levied that is expected to be collected is credited to tax revenue. REQUIRED: The basis on which governmental accounting systems of SLGs required an accounting system that makes it possible to (1) present fairly and with full disclosure the funds and activities of SLGs in conformity with GAAP and (2) determine and demonstrate compliance with finance-related legal and contractual provisions. (). A fund is defined as “a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. or limitations” (SGAS 1) DISCUSSION: Answers (). . and () are incorrect because 2 . The uncollectible portion is credited to an allowance for uncollectible taxes. To satisfy these objectives. Answer (D) is correct. Answer (C) is incorrect because tax revenue and allowance for uncollectible taxes are credited and tax receivable is debited.1 . together with all related reliabilities and residual equities or balances. Answer (B) is incorrect because only the portion of the taxes levied that is expected to be collected should be credited to tax revenue. which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations. and changes therein. with the remainder credited to an allowance for uncollectible taxes. Also. Answer (A) is incorrect because tax receivable should be debited and tax revenue credited. SLG accounting systems should be organization on a fund basis. restrictions. with the remainder credited to an allowance for uncollectible taxes. Tax receivable is debited for the full amount of the taxes levied. only the portion of the taxes levied that is expected to be collected should be credited to tax revenue.